an open letter to loblaw: greed is not good -- especially for public relations

I am a Loblaw customer and I was extremely disappointed by recent public statements made by Loblaw CEO Galen Weston, Jr., regarding the proposed raise of the minimum wage in Ontario. Mr. Weston claimed that the proposed wage hikes will result in higher prices and more self-checkout aisles, and speaks about labour costs "ballooning" by $190 million.*

Mr. Weston clearly values Loblaw's shareholders more than it cares about its customers. When I spend my hard-earned money, I don't think it's too much to ask the store to provide check-out and bagging, and for there to be adequate staff on-hand to minimize time spent waiting in line. Instead, Mr. Weston implies that if the minimum wage is increased, I will be forced to provide his very profitable company with free labour by doing my own checkout.

When a company posts $990 million in profit in one year (2016), it is reasonable to expect it to raise employees' wages, provide more hours (which means better service for customers), and consistent scheduling.

I can imagine that Mr. Weston, who is the second-richest person in Canada, does not understand what it's like to (try to) survive on a part-time, minimum-wage job. Not only is the wage well below a basic standard of living, but hours are inadequate, ensuring the need for a second job. Inconsistent scheduling makes it impossible for workers to hold a second job -- or to attend school, which might increase their chances of ever earning more than minimum wage! By paying minimum wage and offering only precarious work, Loblaw contributes to poverty in Canada.

And then there's the company's image. From a public relations point of view, wouldn't it be smarter for Mr. Weston to champion the minimum-wage increase, and voice its concern for its employees, rather than whining about the cost of running his wildly profitable business? Mr. Weston would do well to listen to Toronto Star business columnist Jennifer Wells, who reminds him "that the company’s people are assets, not just a cost centre". (It's an excellent column: I hope Mr. Weston will read it.)

It's not too late for Mr. Weston to salvage the company's public image. I look forward to reading his retraction and apology, and Loblaw's support for more fair and livable employment laws in Ontario.

Sincerely,

Laura Kaminker
Mississauga, Ontario

* Although the word "ballooning" is not quoted directly, every media story about Mr. Weston's statement uses it -- not a coincidence. I was unable to locate the media release online.

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